We Told You So

By John Richardson

POLYETHYLENE (PE) prices in China fell by $5-10/tonne for the week ending 1 March, according to ICIS pricing.

“It is increasingly clear that Chinese growth will slow from the second quarter onwards and this will limit potential recovery for Asia,” say analysts at Credit Agricole.

The Shanghai Composite Index dropped 3.7% on Monday, its biggest daily loss since November 2010, as a result of efforts to rein-in surging property prices and data released on Sunday that showed the country’s service sector expanded at its slowest pace for five months.

This followed disappointing HSBC purchasing managers’ index for February

We have consistently warned over the last few monthhs that the Chinese recovery, if it can be even called a recovery, would not be sustained.

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